of one way to rip you off, they find another.
The CPFB (Consumer Protection Finance Bureau)
is helping consumers with all manner of rip off schemes.
You may end up like the homeless guy in the picture if you get taken by one of the crooked car title loan outfits that is now victimizing Michigan residents.
Per Brian J. O’Connor in the Detroit News:
Two lenders offering loans that charge consumers exorbitant, triple-digit interest rates to borrow against their cars are operating in defiance of state law in Michigan, often seizing the vehicles of desperate borrowers who can’t pay.
These unlicensed lenders are issuing auto-title loans, which charge interest rates of more than 250 percent. They require borrowers to sign over the titles to their paid-off cars and don’t issue loan documents. The borrowers typically get 25 percent or less of the vehicle’s value, and can pay thousands of dollars in interest in a year or less. In many cases, the title lender won’t advance the cash until the borrower installs a GPS unit sent by the lender, to make it easier to repossess the car.
I am not sure if the CPFB is on this yet, but they take complaints, just go to their website linked to above.
They have a form letter you can send to your student loan servicer, that is designed to get them to honestly answer your questions about student loan repayment plans, something the CPFB has already investigated.
If you are lucky enough to actually be sued by one of the zombie debt holders I blog about, at least you have a chance defend yourself in court,
Most every contract you will sign in your life is what we call a contract of adhesion, that is, take it or leave it.
The credit card company, the bank, the mortgage company, the insurance company, the stock broker firm, their lawyers write the contract.
And almost all of them say, you waive any right to trial, and agree to arbitration.
This was upheld by a horrible Supreme Court decision that effectively eliminated your 7th Amendment (to the Constitution) right to a jury trial.
Kevin McCoy in USA Today:
A CFPB report sent to Congress in March showed that more than 75% of consumers surveyed about credit cards didn’t know whether their cards required arbitration to resolve disputes. Fewer than 7% of those covered by arbitration clauses realized the requirement restricted their ability to file lawsuits, the report found.
In a first step toward potential new rules, the CFPB is publishing an outline of proposals under consideration in preparation for forming a small business review panel to gather feedback from industry stakeholders. The regulator is scheduled to hold a Denver field hearing on the issue Wednesday.
The sooner the better for us consumers.